Knowledge Base

Which method is used for the valuation of unlisted equities?

The last closing price

Discounted future cash flows or transaction multiples

Market price or a model in the absence of listing

The last known net asset value

Which article of the AMF General Regulation requires the depositary to verify the compliance of valuation procedures?

Article 323-18

Article 323-19

Article 323-20

Article 323-21

What is the primary source of prices for listed instruments in the CIU valuation process?

Data providers such as Bloomberg or Reuters

External valuators

Regulated markets

Counterparties for OTC derivatives

What is the mandatory procedure in case of significant discrepancies in the valuation of complex financial instruments?

A quarterly review by the compliance officer

A mandatory counter-valuation if the price comes from a single source

Validation by senior management only if the discrepancy exceeds 5%

An immediate notification to the AMF

Categorize items by dragging them to the appropriate zones

Items to categorize:

Verification of the origin of prices used

Annual review of valuation policies

Review of models used for complex instruments

Analysis of threshold breaches

Categories:

First-level controls

Second-level controls

The valuation policy must include a periodic review procedure.

True

False

The valuation policy must be approved by senior management only for AIFs.

True

False

First-level controls

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